KLL Corporation owns machinery that cost $35,000 when purchased on July 1, 2009. Depreciation has been recorded at a rate of $4,200 per year, resulting in a balance in accumulated depreciation of $14,700 at December 31, 2010.

The machinery is sold on September 1, 2013, for $18,375.

Prepare journal entries to

1. Update and record depreciation for 2013.
2. Record the sale.